/NOT FOR DISTRIBUTION TO
The purchase price of
"Following our recent announcement in December of seven new communities, these Acquisitions will provide further depth to our portfolio in our core markets along with the addition of one new
The Acquisition Portfolio is 93.1% leased as of
"We are excited to source and execute these off-market acquisitions through our long-standing industry relationships," commented
Overview of the Acquisitions
Shepherdsville, Kentucky : TheShepherdsville community includes 77 lots and expands the REIT's local market inventory by nearly 4%. Shepherdsville Pointe is 100% occupied and is located within theLouisville market inBullitt County Kentucky and is close to a Walmart Supercenter,Bullitt County schools and an Amazon fulfillment center which provides jobs and services for the community.Shepherdsville is the county seat inBullitt County , which is considered the gateway toKentucky's famousBourbon Trail and top-rankedBullitt County schools.Bowling Green, Kentucky : TheBowling Green community includes 74 lots and is the first Flagship REIT entry into theBowling Green area. 96% occupied,Hamilton Pointe is approximately two hours fromPaducah to the southwest and fromLouisville to the north, which is home to many current Flagship REIT communities. Located 60 miles north ofNashville and 110 miles south ofLouisville offInterstate 65 ,Bowling Green is the third-most populous city in the state ofKentucky afterLouisville andLexington . Significant companies inBowling Green include theGM Corvette Assembly Plant , Fruit of the Loom/ Russell Athletics,Houchens Industries ,Holley Performance Products ,Bowling Green Metalforming , Camping World and the third largestKentucky public university,Western Kentucky University .Carrollton, Kentucky : TheNorthern Kentucky community of Oakview Pointe has been expanded with the acquisition of eight new lots, bringing the entire community to 149 home sites. Oakview Pointe is minutes fromI-71 and 40 minutes from theCincinnati/Northern Kentucky International Airport , Amazon's CVG Air Hub and fulfillment center.
Acquisition Portfolio as at
The Acquisitions are a targeted and strategic expansion of the REIT's portfolio, increasing the number of manufactured housing communities from 52 to 54 and the number of manufactured housing lots from 8,634 to 8,793. The table below provides a summary of the Acquisition Portfolio as of
Acquisition Portfolio | ||
# of Lots | (#) | 159 |
Lot Occupancy | (%) | 93.1% |
Lot AMR | (US$) | |
Forecast NOI – Year 1 | (US$ mm) |
About
Non-IFRS Financial Measures:
Certain financial measures disclosed in this press release do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore a non-IFRS financial measures. The REIT's method of calculating such non-IFRS financial measures may differ from other issuers' methods and, accordingly, may not be comparable to such non-IFRS financial measures reported by other issuers.
AFFO is defined by the REIT as Funds From Operations (being IFRS consolidated net income adjusted for items such as distributions on redeemable or exchangeable units recorded as finance cost under IFRS (including distributions on the class B units of the REIT's subsidiary,
Debt to Gross Book Value Ratio does not have any standardized meaning prescribed by IFRS and is therefore a non-IFRS financial measure. Debt to Gross Book Value Ratio is calculated as Indebtedness (as defined in the declaration of trust governing the REIT, which is available under the REIT's profile on SEDAR at www.sedar.com) divided by Gross Book Value (being, at any time, the greater of: (a) the value of the assets of the REIT and its consolidated subsidiaries, as shown on its then most recent consolidated balance sheet prepared in accordance with IFRS, less the amount of any receivable reflecting interest rate subsidies on any debt assumed by the REIT; and (b) the historical cost of the investment properties, plus (i) the carrying value of cash and cash equivalents, (ii) the carrying value of mortgages receivable; and (iii) the historical cost of other assets and investments used in operations).
Net Operating Income ("NOI") is defined as total revenue from properties (i.e., rental revenue and other property income) less direct property operating expenses in accordance with IFRS. NOI should not be construed as an alternative to net income determined in accordance with IFRS. The REIT regards NOI as an important measure of the income generated from the income producing properties and uses NOI in evaluating the performance of the REIT's properties. It is also a key input in determining the value of the REIT's properties.
Forward-Looking Statements:
This press release contains statements that include forward-looking information within the meaning of Canadian securities laws, including with respect to the terms of, timing for completion of and source of funding for the pending Acquisitions, the expected synergies and AFFO from the Acquisitions and timing thereof, and the expected impact of the Acquisitions on the REIT's NOI and Debt to Gross Book Value ratio. In some cases, forward-looking statements can be identified by terms such as "may", "will", "could", "occur", "expect", "anticipate", "believe", "intend", "estimate", "target", "project", "predict", "forecast", "continue", or the negative thereof or other similar expressions concerning matters that are not historical facts.
These forward-looking statements reflect the current expectations of the REIT regarding future events. The REIT has based these forward-looking statements on certain assumptions about future events and trends, including that: occupancy levels at the REIT's properties stay consistent with recent past experience with very modest growth in the first year for much of the Acquisition Portfolio; rent collections for the Acquisition Portfolio are consistent with the trend generally experienced for the REIT's portfolio. The REIT cautions that this list of assumptions is not exhaustive; inflation remains relatively low; interest rates remain relatively stable; and tax laws remain unchanged. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REIT's internal expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties and may not prove to be accurate and certain objectives and strategic goals may not be achieved. A variety of factors, many of which are beyond the REIT's control, could cause actual results in future periods to differ materially from current expectations of events or results expressed or implied by such forward-looking statements, such as the risks identified in the REIT's final prospectus available at www.sedar.com, including under the heading "Risk Factors" therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made.
SOURCE
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